Advice. What about free market?

What are the steps to start investing in share market, India? Procedure and advice for a complete newbie?

• I need to know the legal basic steps to buy shares or sell shares. Also i want to know, from where I can do these things?And advice in the sense, I need to know the Do's and Don'ts of share buying and selling. And the mistakes, which mostly people do in initial phase.Thanks in advance.

• Answer:

  To start investing in the stock market or any other investment avenue, it's very important to have a comprehensive understanding of how the system works. To start off, you'll need a Savings back account and a Trading and Demat account linked to one another. There are many brokerage houses which offer a variety of plans. Choose the one that is cost effective and in accordance with your needs. India Infoline, Anand Rathi, Motilal Oswal are among a few that provide top notch services. Alternatively, you can also open an account with a bank that offers 3 in 1 integrated accounts. (savings, trading and demat combined). Be very careful while going through this procedure as the banks have their own terms and conditions which you'll have to adhere to once you sign up. So it's advisable for you to read the terms and conditions in the application form and not blindly sign the application. Remember the brokerage house/banks charge you for every service you avail. So it's important to know all the costs associated with this process. Once this procedure is complete, it normally takes three working days for the account to be activated. The brokerage house /bank will also charge you for account opening and annual account maintenance. When you start transacting, the service provider charges a fixed percentage as brokerage, which usually depends on the plan you choose. Brokerage is charged on buying and selling separately. You're in it to make money so make careful and informed decisions while buying and selling shares. Happy Investing.